Outsourced IT 'should still be managed in-house'

In-house management staff can play a vital role in ensuring the success of outsourced IT projects, according to an expert.

Jonathan Cooper-Bagnall, head of shared services and outsourcing practice at PA Consulting, told the Financial Times that although many companies outsource functions to achieve cost savings, this often comes at a price.

For example, he suggested that outsourcing can sometimes lead to less flexible services and a slower response to change, stemming from the fact that companies no longer have strategic control over the function.

As such, Mr Cooper-Bagnall highlighted the importance of ensuring that internal management staff are assigned to overseeing and controlling these third-party relationships, a point which he believes is vital for firms of all sizes.

"Even if there is no IT department, someone still has to be accountable, even if that accountability sits with the chief financial officer, or an operations director," he explained.

Last month, a survey from Interserve revealed that outsourcing levels among local government bodies is expected to rise significantly by 2014.

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